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HomeMy WebLinkAbout030149 ORD - 04/08/2014Page 1 of 3 Ordinance Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and Hausman Foods, LLC ( "Hausman ") to provide a grant of up to $205,920, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Hausman Business Incentive Agreement for the creation of jobs; and appropriating $205,920 from the unreserved fund balance in the No. 1140 Business /Job Development Fund for said business incentive grant from the Type A Corporation to Hausman; and changing the FY 2013- 2014 operating budget, adopted by Ordinance No. 029915, by increasing proposed expenditures by $205,920. Whereas, the Type A Corporation has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). Whereas, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Hausman for the improvements to their facility on Beacon Street in Corpus Christi and the creation of jobs; in which Hausman will invest at least $2,100,000 for improvements to their meat processing facility and the creation of at least 52 full -time jobs with an average annual salary of at least $29,000 and annual payroll of at least $1,508,000 over a five year period will best satisfy this goal; Whereas, City Council deems that it is the best interest of the City and citizens to approve the business incentive agreement for creation of jobs between the Type A Corporation and Hausman; Whereas, there is a need for a business incentive project service agreement between the City and the Type A Corporation for the implementation and administration of the business incentive agreement for the creation of jobs between the Type A Corporation and Hausman. Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. That the business incentive agreement for the creation of jobs between the Type A Corporation and Hausman that provides for the improvements to their meat processing facility and the creation of jobs within the City of Corpus Christi, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project service agreement between the City and Type A Corporation for the implementation and administration of the business incentive agreement with Hausman, which is attached to this resolution as Exhibit B. ORDINANCE - Hausman 030149 INDEXED Page 2 of 3 SECTION 3. That $205,920 from the unreserved fund balance in the No. 1140 Business /Job Development Fund is appropriated for a business incentive grant from the Type A Corporation to Hausman for the improvements to their meat processing facility and the creation of jobs. SECTION 4. That Ordinance No. 029915, which adopted the FY 2013 -2014 Operating Fund, is changed to increase proposed expenditures in the No. 1140 Business /Job Development Fund by $205,920 for a business incentive grant from the Type A Corporation to Hausman for the improvements to their meat processing facility and the creation of jobs. ATTEST: Rebecca Huerta City Secretary APPROVED: gyof Corpus Christi, Texas 2014. THE CITY OF CORPUS CHRISTI Nelda Martinez Mayor That the foregoing Rrcligance was read for the first time and passed to its reading on this the of'A t( Ck\-), 2014, by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb ORDINANCE - Hausman 01/4\06k4i- Chad Magill Colleen McIntyre Lillian Riojas Mark Scott 030149 second (k104-0,4- Page 3 of 3 That t o{egoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb PASSED AND APPROVED, this the ATTEST: Rebecca Huerta City Secretary ORDINANCE - Hausman Chad Magill Colleen McIntyre Lillian Riojas Mark Scott day of , 2014. Nelda Martinez Mayor BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND HAUSMAN FOODS, LLC FOR CREATION OF JOBS This Business Incentive Agreement for Capital Investments and the Creation of Jobs ( "Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Hausman Foods, LLC ( "Hausman "), a Texas limited liability corporation. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City ") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1 /8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on October 18, 2010, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ( "Type A Guidelines "), which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, Hausman has been located in the City since 1939 and currently has four locations that process meat for resale to grocery stores and restaurants; WHEREAS, Hausman proposes to invest approximately $2,100,000 over a five year period; WHEREAS, on January 20, 2014 the Board approved this grant and determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be Page 1 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 provided to Hausman, through this Agreement with Hausman, to be used by Hausman to add a second shift to their Beacon Street facility and will result in the creation of 52 full -time jobs, with an estimated annual average salary of $29,000. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and Hausman agree as follows: 1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for five years beginning on the effective date. 3. Performance Requirements and Grants. The Performance Requirements and Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement. 4. Job Creation Qualification. a. In order to count as a created job under this Agreement, a "job" must be as defined in the Type A Guidelines as a full -time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. b. Hausman agrees to confirm and document to the Corporation that the minimum number of jobs created as a result of funding provided by this Agreement is maintained throughout the term by the Business. c. Hausman agrees to provide Corporation with a sworn certificate by authorized representatives of each business assisted under this Agreement certifying the number of full -time permanent employees employed by the business. d. Hausman shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 5. Utilization of Local Contractors and Suppliers. Hausman agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the construction of the Project, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency in the normal course of business, with a goal of 50% of the total dollar amount of all construction contracts and supply agreements being paid to local contractors and suppliers. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. Hausman agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Hausman to comply with the Local Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Hausman is in compliance with this requirement. Failure to substantially comply Page 2of8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. 6. Utilization of Disadvantaged Business Enterprises ( "DBE). Hausman agrees to exercise reasonable efforts in utilizing contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically- underutilized business enterprises. In order to qualify as a business enterprise under this provision, the firm must be certified by the City, the Regional Transportation Authority or another governmental entity in the jurisdiction of the home office of the business as complying with state or federal standards for qualification as such an enterprise. Hausman agrees to a goal of 30% of the total dollar amount of all construction contracts and supply agreements being paid to disadvantaged business enterprises, with a priority made for disadvantaged business enterprises which are local. Hausman agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Hausman to comply with the DBE Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Hausman is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. For the purposes of this section, the term "local" as used to describe contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically - underutilized business enterprises includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. 7. Living Wage Requirement. In order to count as a permanent full -time job under this agreement, the job should provide a "living wage" for the employee. The target living wage under this agreement is that annual amount equal or greater than poverty level for a family of three, established by the U.S. Department of Health and Human Services Poverty Guidelines, divided by 2,080 hours per year for that year. 8. Health insurance. To qualify for this incentive, an employer shall certify that it has offered a health insurance program for its employees during the term of the Agreement. 9. Warranties. Hausman warrants and represents to Corporation the following: a. Hausman is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. Hausman has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. Hausman has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other Page 3 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. Hausman has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The person executing this Agreement on behalf of Hausman is duly authorized to execute this Agreement on behalf of Hausman. f. Hausman does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Hausman is convicted of a violation under §U.S.C. Section 1324a(f), Hausman shall repay the payments received under this Agreement to the City, with interest at the Wall Street Journal Prime Rate, not later than the 120`h day after the date Hausman has been notified of the violation. 10. Compliance with Laws. During the Term of this Agreement, Hausman shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 11. Non - Discrimination. Hausman covenants and agrees that Hausman will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 12. Force Majeure. If the Corporation or Hausman are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or Hausman are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 13. Assignment. Hausman may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 14. indemnity. Hausman covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ( "Indemnitees ") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any Page 4 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 manner connected with, or are claimed to arise out of or be in any manner connected with Hausman activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. Hausman must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 15. Events of Default by Hausman. The following events constitute a default of this Agreement by Hausman: a. The Corporation or City determines that any representation or warranty on behalf of Hausman contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against Hausman or any attachment or other levy against the property of Hausman with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. Hausman makes an assignment for the benefit of creditors. d. Hausman files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by Hausman become delinquent, and Hausman fails to timely and properly follow the legal procedures for protest or contest. f. Hausman changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. g. Hausman fails to comply with one or more terms of this Agreement. 16. Notice of Default. Should the Corporation or City determine that Hausman is in default according to the terms of this Agreement, the Corporation or City shall notify Hausman in writing of the event of default and provide 60 days from the date of the notice ( "Cure Period ") for Hausman to cure the event of default. 17. Results of Uncured Default by Hausman. After exhausting good faith attempts to address any default during the Cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of Hausman, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. Page 5 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 a. Hausman shall immediately repay all funds paid by Corporation to them under this Agreement. b. Hausman shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by Hausman of all sums due, the Corporation and Hausman shall have no further obligations to one another under this Agreement. 18. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of Hausman's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Hausman is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 19. Hausman specifically agrees that Corporation shall only be liable to Hausman for the actual amount of the money grants to be conveyed to Hausman, and shall not be liable to Hausman for any actual or consequential damages, direct or indirect, interest, attomey fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all Page 6of8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 �i yv� \,-4\ supporting documentation, as requested. Payments to be made shall also require a written request from Hausman to be accompanied by all necessary supporting documentation. 20. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 21. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: Hausman: Hausman Foods, LLC Attn: Steven McClure, Sr. PO Box 2422 Corpus Christi, Texas 78403 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: President 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469 -9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 22. Incorporation of other documents. The Type A Guidelines, as amended, are incorporated into this Agreement. 23. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 24. Relationship of Parties. In performing this Agreement, both the Corporation and Hausman will act in an individual capacity, and not as agents, representatives, employees, employers, Page 7 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 partners, joint - venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 25. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 26. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 28. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and Hausman. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 29. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. The remainder of this page intentionally left blank. Page 8 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 Corpus Christi Business & Job Development Corporation By: Date: Attest: By: Robert Tamez President Rebecca Huerta Assistant Secretary Hausman Foods, LLC By: Date: Steven R. McClure, Sr. President zlizl��l THE STATE OF TEXAS COUNTY OF NUECES f�,� This instrument was acknowledged before me on Yv v 12- , 2014, by Steven R. McClure, Sr., President, for Hausman Foods, LLC, a Texas I�ited liability corporation, on behalf of the corporation Notary Public State of Texas Page 9 of 8 Type A Business Incentive Jobs Creation Hausman 02 07 2014 :.. .,,�� MEREDITH DARDEN : • = Notary Public. Vote of Texos My Commission Expires 4 4;,,00 July 25, 2017 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1. Hausman shall invest at least $2,100,000 to add a second shift to their Beacon Street facility, over a five year period. Hausman shall further, over the term of this Agreement, create 52 full - time jobs, with an average annual salary of $29,000 as described in the schedule below. Year Number of New Jobs Annual Payroll Capital Investment 1 10 290,000 300,000 2 15 725,000 300,000 3 7 928,000 400,000 4 10 1,218,000 450,000 5 10 1,508,000 550,000 a. Grants, not to exceed $41,184 per year and a cumulative total of $205,920 over five years, are available on a per job created basis. b. Should the Company fall below the Performance Standards in any one year, the Company shall receive a reduced percentage of the Cash Incentive in effect that year. Such reduction will be in that percentage equal to the percentage the Company's performance falls below the Performance Standards. However if the Company falls below 70% then there is no payment for that year. By way of example only: assume a partial Cash Incentive payment is required in the fifth year of this Agreement and the Performance Standards have not been reached. For the purposes of calculating this reduced Cash Incentive, it is agreed that 20% of the Cash Incentive is being given premised on the payroll requirements of this Agreement and 80% of yearly incentive amount is attributable to the capital investment requirements. The reduced Cash Incentive shall be calculated as follows: Annual payroll commitment: Annual Investment commitment: 5th year: $1,508,000 5th year: $550,000 5th year actual: $1,305,000 5th year actual: $555,000 Percent of Total 86.54% Percent of Total 100% 5th year incentive calculation: Reduced Cash Incentive calculation: 20% x 86.54% x $41,184 = $7,128 Total Cash Incentive Economic Incentive Calculation: 80% x 100% x $41,184 = $32,947.20 $7,128.00 + $32,947.20 = $40,075.20 A -1 Type A Business Incentive Jobs Creation and Retention Hausman 01 22 2014 In the 5th year, the Company would receive a reduced Cash Incentive of $40,075.20 from the Corporation for not meeting the performance goals for annual payroll requirements. 2. The Corporation will award a grant to Hausman based on the formula above, payable not later than June 15 of each year if Hausman makes the required capital investment in buildings, furniture, fixtures and equipment, retains the minimum number of in the preceding year described in paragraph 1 above (collectively, the "annual performance benchmarks "). A -2 Type A Business Incentive Jobs Creation and Retention Hausman 01 22 2014 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on October 18, 2010, which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Hausman Foods, LLC ( "Hausman ") has submitted a proposal to the Type A Corporation for a $205,920 grant for the investment of $2,100,000 and the creation of 52 new jobs in their existing meat processing facility; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Hausman's $2,100,000 investment and creation of 52 new jobs in their existing meat processing facility; and WHEREAS, the Type A Corporation and Hausman have executed a business incentives agreement for the investment and the creation of jobs related to Hausman's adding a second shift to their existing meat processing facility. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and Hausman related to Hausman meat processing facility in Corpus Christi ( "Business Incentive Agreement "). Page 1 of 3 Type A Business Service Agreement - Hausman 01 -22 -14 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager or designee shall administer funding on behalf of the Type A Corporation. b. The City Manager or designee shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is the same date as the Business Incentive agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The remainder of this page intentionally left blank. Page 2 of 3 Type A Business Service Agreement - Hausman 01 -22 -14 The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson City Manager Robert Tamez President Date: Date: Attest Rebecca Huerta City Secretary Page 3 of 3 Type A Business Service Agreement - Hausman 01 -22 -14 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his /her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: April 8, 2014 Agenda Item: Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and Hausman Foods, LLC ( "Hausman ") to provide a grant of up to $205,920, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Hausman Business Incentive Agreement for the creation of jobs; and appropriating $205,920 from the unreserved fund balance in the No. 1140 Business /Job Development Fund for said business incentive grant from the Type A Corporation to Hausman; and changing the FY 2013 -2014 operating budget, adopted by Ordinance No. 029915, by increasing proposed expenditures by $205,920. Amount Required: $ 205,920.00 Fund Name Account No. Fund No. Org. No. Project No. Amount CCBJDC 530000 1140 15020 $205,920.00 Total $205,920.00 ❑ Certification Not Required Director of Financial Services Date: MAR 2 5 2014